Citibank to increase marketshare in 'emerging affluent' segment

Mumbai: Global banking major Citibank Monday said it is targeting to increase its market share in the newly identified 'emerging affluent' segment from 10 to 15 percent.

The segment christened 'emerging affluent' involves those with income levels ranging from Rs 3 lakh to Rs 15 lakh, which was under-served by the bank but which it would now target following a detailed survey.

Courtesy its corporate salary accounts product, the bank already caters to around 10 percent of the estimated 1.6 crore people who fall under the category and is targeting to take it to 15 percent in the next two to three years, its Business Head for Retail Banking Sandeep Bhalla told reporters here.

For doing so, the bank announced a slew of freebies, including free withdrawals at any automated teller machines across the world, waiver of fees on facilities like issuing demand drafts and emergency cash assistance of up to USD 1,000 when a person is travelling abroad.

The bank's Country Business Manager Anand Selva said the freebies will be for lifetime provided the concerned customer maintains minimum of Rs two lakh in total funds with the bank, which includes deposits, mutual fund investments and insurance premiums, among others.

Without giving any numbers, Selva said the bank will be hiring 'universal bankers' which will act as a sales force for the new line of products.

Citi, which was in the news recently for lay-offs, hired 1,500 professionals last year, he said.

Revenues from the newly identified segment of 'emerging affluent' have been growing at 16 percent annually and the bank expects to outpace the industry in revenue growth from the sector, he said, sounding confident that it will be able to compete with private sector banks which presently serve the segment.

The bank, which suffered in the aftermath of the global financial crisis in 2008, is also positive about expanding its unsecured lending portfolio focusing on both the credit cards and personal loans, he said.

Selva said even though its number of customers and market share in terms of spends has come down from its pre-crisis peaks, Citi is very bullish about the credit card business in the country.